Marathon Oil reducing debts by $500 million
Marathon Oil has announced that it will exercise an option to redeem senior notes a year earlier. The 2.8 percent Senior Notes total $500 million, and were due April 29, 2022, reducing its gross debts by that amount, and its annual cash interest expense by $14 million.
Chairman, President and CEO of Marathon Lee Tillman said the move follows through on a commitment to reduce debts and ensure at least 30 percent of cash flow from operations is directed toward investor-friendly purposes.
“It’s also consistent with our objective to continue improving our investment-grade balance sheet through gross debt reduction and fully addresses our next significant debt maturity,” he said. “We continue to believe maintaining a strong balance sheet is foundational to successfully executing our strategy of sustainable free cash flow generation and meaningful return of capital to investors across a wide range of commodity prices.”
Energy Transfer acquires Enable Midstream
In a $7 billion deal, Energy Transfer has announced plans to acquire Enable Midstream, which will boost its Gulf Coast and Midcontinent presence.
This will give the company significant new gas gathering and processingn assets in Oklahoma, Arkansas, East Texas and North Louisiana.
The transaction is expected to close mid-2021, subject pending regulatory approvals and satisfactory closing conditions.
Energy Transfer operates the Dakota Access pipeline in North Dakota, which carries about half of the state’s daily production to Patoka, Illinois, from which it can access other markets, including the Gulf Coast.
Rigs are up by 2
North Dakota rigs are up by 2 to 17 over last week. Four of those are being run by Continental, three by Marathon, three by Hess. Petro Hunt, Oasis, Enerplus, Iron Oil, Whiting, Slawson, and Crescent point all have one each.
Pompeo among speakers at WBPC
Former Secretary of State Mike Pompeo has been tapped to speak at the Williston Basin Petroleum Conference, scheduled for May 11 through May 13 at the Bismarck Event Center in Bismarck.
“We are excited to welcome Secretary Pompeo to WBPC this year. He has an energy background and understands the important role our domestic energy industry plays in supporting our national security,” NDPC President Ron Ness said. “We look forward to hearing an encouraging message about the value of American energy to the world.”
The WBPC is the largest oil and gas conference in North Dakota, and will offer many valuable networking opportunities, as well as an incredible lineup of more than 70 speakers, includinig Energy Transfer CEO Kelcy Warren, Bob Philips CEO of Crestwood Midstream, and ConocoPhillips VP of Great Plains Business Unit Dan Clark, to name a few. There will also be more than 250 exhibits showcasing the very latest technologies or other insights into the Bakken, which is the nation’s No. 2 oil play.
A full agenda is online at tinyurl.com/tsvpc4mz.
“Despite a challenging year due to COVID-19 and uncertain market conditions, the Bakken is bouncing back, and we’re seeing a lot of excitement from exhibitors and attendees to get together, and a great response so far,” Ness said. “Our trade show is almost sold out, and attendance continues to tick up. We’re looking forward to helping our industry and our state return to normal and get back to business.”
Energy scholarship applications being accepted
Applications are now being accepted for the North Dakota Petroleum Foundation’s Al Golden Memorial Scholarship for students who are pursuing energy careers.
Established in 2008, the scholarship named after North Dakota oil pioneer Al Golden awards nine $2,000 scholarships annually. Recipients get $1,000 for the spring semester and $1,000 for the fall. The scholarship is open to full-time students with a 3.0 GPA or higher.
The application deadline is June 1. Applicants must have at least six months work and/or internship experience in the oil and gas industry. They must complete at least 12 hours in geology, earth science, geological/petroleum engineering, chemistry, math, or safety.
Call before you dig
April is safe digging month in North Dakota. With miles and miles of underground utility lines as well as oil and gas pipelines, it is particularly important to remember to call 8-1-1 before digging anywhere. Otherwise, you may end up having to call 9-1-1 instead, and face up to $25,000 in fines per violation, depending on the severity of an unintended strike on an underground utility.
Third-party strikes are the leading cause of oil and gas spills, according to a study by the EERC.
earings, comment periods, meetings, studies
• WDEA will host a forum for oil industry trucking interests and county and tribal road managers to discuss improving oilfield traffic from 9 a.m. to 3 p.m. MDT May 6 in Halliday. Needs specific to western North Dakota will be discussed.
• Blue Buttes Special waste landfill permit comment period closes April 26, 2021. Draft permit is available online at tinyurl.com/5rkfkkuy.
• USDA Rural Renewable Energy Pilot Program hearing 2 to 4:30 p.m. EDT April 22. To participate online, RSVP at tinyurl.com/4emza4fs. Submit written comments by April 29 via the Federal eRulemaking Portal, online at www.regulations.gov. Search for docket ID RBS-21-Business-0010. Additional information online on page 16575 of the March 30, 2021 edition of the Federal Register, tinyurl.com/d9dz373r.
• API has completed a study examining the impact of U.S.-Canada Cross-Border Petroleum trade, and how it has led to lower consumer energy costs and stronger energy security for both sides of the border. The full study is online at tinyurl.com/pffhm3c4.